China Investigates Illegal Bitcoin Mining Farms at Hydropwer Stations In Sichuan Province
- The Chinese government is investigating crypto miners in the Sichuan province
- Sichuan is one of the most important crypto mining regions in the world
Authorities in China are investigating allegedly illegal Bitcoin (BTC) mining farms that have apparently been built without the required permissions in Sichuan province. This is according to the local media agency Sina in a report on May 30.
Illegal Bitcoin Miners Investigated in China
According to a recent report released by Sina, there have been reportedly constructed 30,000 Bitcoin mining machines without approval from the government. The companies behind the constructions of these farms are currently being investigated.
In general, the alleged mining farms have been installed close to the Dadu river, which hosts the world’s biggest embankment dam. Although this dam is under construction, the region has one of the cheapest electricity prices for mining the most popular digital asset.
China and the Sichuan province specifically have been receiving large companies and investors that wanted to mine virtual currencies. Sina claims that 70% of the world’s Bitcoin are mined in China and 70% of the Chinese mining activities are focused in Sichuan province due to the electricity capabilities related to the Dady River.
There were some reports in the last months in which China’s National Development and Reform Commission, a local agency in charge of macro policies, revealed that authorities are considering banning crypto mining activities in the country.
Crypto miners need to have cheap electricity that would allow them to reduce the costs of powering energy-consuming miners and cold temperatures for miners to run more efficiently. Bitcoin mining activities tend to be profitable, but there are periods of time in which some miners have to leave the market due to an adverse market.
Bitcoin’s hash rate is currently close to its all-time high registered in September 2018 when it was over 60 million TH/s. Which is going to be the effect of this investigation on Bitcoin’s hash rate and its network is yet to be seen.